What is the maximum liability for bodily injury under Mark's split limits policy?

In a split limits policy, the coverage for bodily injury is divided into two parts: one part typically applies to injuries sustained by a single individual, while the other part applies to injuries sustained by multiple individuals in a single accident. In this case, if the maximum liability for bodily injury under Mark's policy is indicated as $100,000, it represents the total amount that the insurance company will pay for all claims made by individuals in a particular incident.

This coverage serves to protect the insured from the financial consequences of being held responsible for injuries to others. The specified amount of $100,000 indicates that, in the event of a claim, Mark's insurer will pay out up to this limit to cover medical expenses, lost wages, and other related costs arising from bodily injuries resulting from accidents for which Mark is found liable.

Understanding the specifics of split limits is crucial when interpreting insurance policies, as it forms the basis for assessing coverage and limits of liability, helping policyholders gauge their potential financial exposure in the event of an accident. The correct amount reflects typical practices in the industry, where limits like $100,000 are common for coverage in personal liability situations.